Allowed

Pragathi Krishna Gramin Bank v. Prahaldrao Govindrao Kulkarni

DRT27 Apr 2026OA/2297/2025

Case brief

AI extract

What is this about?

The Tribunal allowed an application seeking a recovery certificate against legal heirs of a deceased borrower for a default in agricultural loans. Evidence of loan availment, default, and security creation was uncontroverted. The debt was admitted on rupees 31.11 lakhs. The Tribunal allowed a reduced interest rate of 6% per annum on the principal for agricultural purposes and permitted recovery ag

What did the court decide?

Authorization to recover Rs. 31,11,791.20 plus 6% p.a. simple interest from date of application on legal heirs, from schedule property and inherited estate.

Pragathi Krishna Gramin Bank versus Prahaldrao Govindrao… — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 27^th Day of April, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.2297/2025

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BETWEEN:

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Karnataka Grameena Bank Branch office at: Desai Kallur Branch Afzalpur Taluk, Kalaburgi District

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Rep. by its Branch manager

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Sri. Nataraj Meeshi …APPLICANT

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AND:

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Sri. Prahaldrao Govindrao Kulkarni S/o. Late. Prahaldrao Kulkarni Aged about 56 years

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Smt. Parimala W/o. Late. Prahaldrao Kulkarni Aged about 72 years

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Both are R/at: Guddewadgi Village, Afzalpur Taluk, Kalaburgi District – 585 301 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : T S Mahabaleswara Defendants : Ex parte

OA-2297/2025

FINAL ORDER

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking for issuance of Recovery Certificate against the defendants for Rs 31,11,791.20/- (Rupees Thirty-One Lakhs Eleven Thousand Seven Hundred and Ninety-One and Paisa Twenty Only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that, the defendants are the legal heirs of the deceased borrower. The Late borrower Prahlad Rao Kulkarni availed the following credit facilities:

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Crop loan of Rs. 1,00,000/- (Rupees One Lakhs Only) for the purpose of growing the crops sugar cane.

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ATL loan of Rs. 6,00,000/- (Rupees Six Lakhs Only) for the purpose of lift irrigation for purchase of IP set, pipeline etc.

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The deceased borrower executed necessary loan document in favour of the applicant bank as security for the due repayment of the loans, interest, cost and charges. The Late borrower Prahlad Rao Kulkarni had also executed Registered Mortgage Deed dated 07.07.2009.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and regularly, the defendants failed in complying the same, resulting in default in repayment and consequentially turning the loan accounts as NPA.

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OA-2297/2025

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In the above circumstances, the applicant approached this Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 26.11.2025.

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The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-19 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and proof affidavit.

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The following issues arise for consideration in this matter:

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i) Whether the applicant had succeeded in proving the OA claim as against the defendants?

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ii) What order are to be passed?

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Both these issues are gone into and decided together.

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The case put forth by the applicant in the Application remains unrebutted as defendants remained ex parte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are

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sufficient to prove availment of credit facilities as stated in the OA, creation of the security interest and the defaults committed in the

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OA-2297/2025

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accounts. The liability of the defendants and the claim of the amount

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due are also proved by the above document. The claim of the

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applicant is well within the limitation.

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Hence in view of the findings arrived herein above, the Tribunal

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find both these issues are in favour of applicant and hence, this

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Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities is

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availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is the view

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that the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.2297/2025 stands allowed,

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The applicant is allowed to recover an aggregate sum of Rs.

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31,11,791.20/- (Rupees Thirty-One Lakhs Eleven Thousand Seven

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Hundred and Ninety-One and Paisa Twenty Only) with further interest

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@6.00 % p.a. (simple) from the date of filing OA till the realization,

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from the defendants, to the extent of their inheritance of any estate

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form the deceased borrower, Prahlad Rao Kulkarni, after giving credit

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to all the amounts recovered and received during the pendency of the

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OA allowed the same to be recovered by proceeding against the schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.

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OA-2297/2025

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ii) If the sale proceeds are not found sufficient to cover the

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liability, the defendants to the extent of their inherited form the

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deceased Prahlad Rao Kulkarni is liable to the proceeds against for the balance amount.

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iii) The applicant bank is allowed cost of the proceedings which applicant to file cost memo within 7 days from the date of receipt of the order.

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iv) The Recovery Certificate to be drawn in terms of this order

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and transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of in

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terms of this final order.

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Communicate a copy of the order to the parties concerned in

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terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 27^th Day of April, 2026].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1 Amarnath Shetty, Branch Manager, of Applicant Bank.

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OA-2297/2025

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Exhibits on the part of the Applicant:

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Exhibit	Date	Particulars of Documents
Nos.
A1	10.07.2009	Loan application
A2	10.07.2009	Loan Agreement executed by Prahlad Rao Kulkarni.
A3	07.07.2009	Registered Mortgage Deed executed by Prahlad Rao Kulkarni.
A4	21.11.2018	Death certificate of Prahlad Rao Kulkarni issued by village accountant.
A5	04.04.2014	Revival Letter executed by Prahaldrao Kulkarni.
A6	08.03.2017	Revival Letter executed by Prahlad Rao Kulkarni.
A7	27.02.2020	Letter of revival legal heirs of deceased borrowers Executed by 1^stdefendant.
A8	06.02.2023	Letter of revival legal heirs of deceased borrowers/co- obligents executed by 1^stdefendant
A9	31.10.2020	Acknowledgment of Security/Liability and executed by 1^st defendant as legal heir.
A10		Statement of account extract.
A11	26.06.2012	Sanction letter.
A12	12.07.2012	Loan Agreement executed by Prahlad Rao Kulkarni.
A13	12.07.2012	Registered Mortgage Deed executed by Prahlad Rao Kulkarni.
A14	02.07.2015	Revival Letter executed by Prahlad Rao Kulkarni.
A15	19.05.2018	Revival Letter executed by Prahlad Rao Kulkarni.
A16	17.05.2021	Letter of revival legal heirs of deceased borrowers Executed by 1^stdefendant.
A17	09.05.2024	Letter of revival legal heirs of deceased borrowers Executed by 1^stdefendant.
A18	23.07.2018	Acknowledgment of Security/Liability executed by 1^st defendant as legal heir.
A19	13.11.2024	Statement of account extract.
Witness	Examined fo	r the Defendants: -Nil -

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List of Documents Exhibited for the Defendants:

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-Nil -

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Pragathi Krishna Gramin Bank v. Prahaldrao Govindrao Kulkarni

Case brief

What is this about?

What did the court decide?

Pragathi Krishna Gramin Bank v. Prahaldrao Govindrao Kulkarni

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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